Tips For A Financially Sound Divorce

More than half of all marriages in the U.S. end in divorce. Strangely, only 5% to 10% of Americans opt for prenuptial agreements. Naturally, a lot of guys get taken to the cleaners.

Here are some tips at different stages of a divorce that may help you put your financial standings in order before things get out of hand. Remember; these are general tips and you should consult with a lawyer in your home state for legal advice.

Preventative divorce tips

Open bank, credit card & brokerage accounts in someone else's name

One of the best ways to protect your property in a divorce is by ensuring that you don't have it at all. You can do this by opening accounts in the name of a family member, like your mother. While this might not be ethical, it can keep the money out of your soon-to-be ex-wife's hands in a divorce. The downside: legally, the money belongs to your mom and she can do what she wants with it.

Keep separate property separate

If it was yours before the marriage, you can keep it after the marriage, but you're going to have to prove that you didn't give it to her. If you're talking about a bank account, it's a question of whether or not you put her name on the account. If it's a house, you can avoid this by keeping her name off the deed.

Get three types of checking/savings accounts

One for you, one for her, and a joint account. Different marriages operate on different financial understandings. You and your wife might share everything, or you might live more like roommates. The best way to protect yourself is by figuring out what you're doing and documenting it. If you pay all of the bills from your salary and she keeps hers for shopping, make sure you keep track of that. The best way to keep track is by keeping separate bank accounts and holding money three ways: yours, hers, and jointly.